Total-led group to pay 2.5pc interest in Iran gas deal

TEHRAN, July 17, 2017

The interest rate of the investment in a $4.8 billion gas deal in Iran by a consortium led by France’s Total is 2.5 per cent, a top official was quoted as saying in a media report.

Gholamreza Manouchehri, deputy managing director of National Iranian Oil Company (NIOC) for Engineering and Development Affairs, added that the ratio offered by National Development Fund is 7-8 percent, Iran Daily reported, citing Trend News Agency

"In total, about $1 billion would be paid as tax to Iranian government, based on agreement as well," he said adding that investment return for the deal is 10 years starting after the inauguration of the first stage.

The first and second stages of the project would become operational in 40 months and 60 months respectively.

The project's first stage will cost $2.479 billion, Iran’s Oil Minister said recently, adding that the project will include the drilling of 30 wells, construction of two 1,500-ton platforms, as well as laying a 250-km underwater pipeline.

The second stage involves the construction of a 20,000-ton platform and its installation at Phase 11 to prevent a decline in gas output level after falling reservoir pressure in 2023.

Manouchehri said that Total should invest $500 million in two years and in case it wants to withdraw from the project due to possible sanctions or other problems, Iran will only pay the principal gradually after the project becomes operational without taking into account any interest or profits.